GSCM 206 Week 5 Quiz

GSCM 206 Week 5 Quiz | Devry University

Question 1

 (TCO 3) In the make-or-buy decision, one of the reasons for buying is

A.      to utilize internal capacity.  

B.      to lower acquisition of new products.  

C.      to obtain desired quality.  

D.      to remove supplier collusion.  

E.       None of the above (correct)

Question 2

 (TCO 2) Which of the following best describes vertical integration?  

A.      To purchase supplier or a distributor  

B.      To develop the ability to produce products that complement the original product  

C.      To produce goods or services previously purchased  

D.      Both to purchase a supplier or a distributor and to produce goods or services previously purchased 

Question 3

 (TCO 3) The cost-based price model is a type of negotiating strategy that requires the supplier to  

A.      open its books to the purchasers.    

B.      combine procurement strategies.  

C.      promote competitive bidding.  

D.      control costs.

Question 4

 (TCO 2) Which of the following is not an advantage of a virtual company?  

A.      Speed  

B.      Specialized management expertise    

C.      Increased capital investment  

D.      Flexibility              

Question 5

 (TCO 2) The three stages of vendor selection in order are

A.      vendor evaluation, vendor development, and negotiations.    

B.      vendor development, vendor evaluation, and vendor acquisition.  

C.      introduction, growth, and maturity.  

D.      cost price, market-based, and competitive bidding.  

E.       vendor negotiations, vendor evaluation, and vendor development.        

Question 6

 (TCO 3) A rice mill in south Louisiana purchases the trucking firm that transports packaged rice to distributors. This is an example of

A.      horizontal integration.  

B.      forward vertical integration.    

C.      backward vertical integration.  

D.      current transformation.  

E.       keiretsu.

Question 7

 (TCO 3) What theory states that you should allow another firm to perform work activities for your company if that company can do it more productively than you can?  

A.      Theory of competitive advantage  

B.      Theory of core competencies  

C.      Theory of comparative advantage  

D.      Theory of outsourcing    

E.       Theory of offshoring

Question 8

 (TCO 3) A manufacturing plant is considering outsourcing its production of tires. There are five risk areas on which the decision will be based. The current plant had scores of 1, 2, 4, 8, and 2; and the outsourced plant had scores of 3, 2, 4, 2, and 5. What is the current plant's score if high scores indicate low risk, and an unweighted factor method is applied?

A.      14  

B.      15 

C.      16  

D.      17    

E.       None of the above      

Question 9

 (TCO 2) McDonald's Russian "food town" is to _____ risk as Hard Rock Café's franchising in diverse political and cultural environments to overcome barriers is to _____ risk.  

A.      process; environmental    

B.      control; environmental  

C.      control; process  

D.      process; control  

E.       environmental; control

Question 10

 (TCO 2) Keeping a product generic as long as possible before customizing is known as

A.      postponement.  

B.      keiretsu.  

C.      vendor-managed inventory.  

D.      forward integration.  

E.       backward integration.